23.07.2025 09:59
The US Securities and Exchange Commission (SEC) initially approved, then unexpectedly halted, the transformation of Bitwise Asset Management's crypto index fund into an exchange-traded fund (ETF). This surprising reversal involved Bitwise's 10 Crypto Index Fund, a product already boasting significant exposure to prominent cryptocurrencies such as Bitcoin and Ethereum.
Initially granted expedited approval by the SEC's Division of Trading and Markets, Bitwise was poised to rapidly transition to ETF status. This accelerated approval process, however, was abruptly suspended the same day by the SEC, subjecting the conversion to a comprehensive Commission review. The SEC's actions triggered immediate speculation within the industry.
Observers drew parallels to Grayscale's similar experience, where an initial approval for a digital large-cap ETF was later put on hold. This parallel fueled conjecture regarding potential internal SEC political maneuvering or a broader initiative to establish stricter regulatory standards for crypto ETFs. Bloomberg ETF analyst, James Seyffart, illuminated the situation, explaining that the stay originated from one or more SEC commissioners, effectively preventing Bitwise from proceeding with the conversion. The unexpected timing – occurring earlier than the anticipated deadline – further intensified the mystery surrounding the SEC's decision.
Meanwhile, a separate development unfolded with 21Shares' application for a spot ETF tracking Ondo (ONDO), the native token of the Ondo Chain, a platform specializing in institutional-grade tokenized real-world assets. This filing follows Ondo Finance's strategic acquisition of regulated broker-dealer Oasis Pro, a move designed to bolster its position within the burgeoning real-world asset (RWA) market. The contrasting actions highlight the dynamic and often unpredictable nature of the regulatory landscape surrounding cryptocurrencies. Industry reactions ranged from bewilderment, as expressed by NovaDius Wealth Management president Nate Geraci who described the situation as "bizarre," to widespread speculation about the long-term implications for crypto ETF approvals. The SEC's actions, sourced from internet resources, leave the future of Bitwise's ETF application, and indeed the broader crypto ETF landscape, shrouded in uncertainty.
